Comparison of House and
Senate Budget Amendments
House Bill 29/30 and
Senate Bill 29/30
House Appropriations Committee Staff
February 26, 2014
1
House and Senate Budgets
 Adopted structurally balanced budgets
 Both Reflected Mid-Session Revenue Reforecast
• Governor reduced FY 2014 forecast by $125.0 million and FY
2015 forecast by $15.0 million
• Impact largely felt in FY 2015 because assumed carry-forward
of balances – required identification of additional savings in
HB 30
 Both Provide for a Reserve Fund to protect against
future downward forecast adjustments
• House included a reserve of $137 million and allocates it for
employee compensation and VRS
• Senate allocates $49.2 million for employee compensation
2
Committee Objectives: House Budget
 Both Identified Savings for the Foregoing Items
•
•
•
•
Limited new initiatives and program expansions
Looked at technical adjustments/recalculations
Allocated additional Literary Fund and Lottery resources
Examined agency balances
 Similar Spending Priorities
•
•
•
•
•
Employee Compensation
Mental Health Package
Restoring Hospital Inflation
Domestic Violence Prevention and Services
Higher Education and K-12 Funding
3
Revenue Changes: HB/SB 29
House
ADDITIONS TO BALANCES
SCC Recovery
Legislative Agency Balances
Productivity Fund
Indigent Defense Commission Balances
School Efficiency Review Balances
Judicial Balances
Revert OEI Balance
FACT Fund Balance
Student Assistance Authority Balance
Governor’s Opportunity Fund Balances
VJIP Balance
College Lab Schools Balance
CHANGES TO REVENUES
Mid-Session Reforecast
Tax Compliance from Additional Audit Positions
Recently Reported Tax Settlement
CHANGES TO TRANSFERS
Increased Estimate Firearms Transaction Fee to GF
Transfer Disaster Recovery Fund to GF
VASAP Balances
ABC Profits Adjustment
Total: Revenue Adjustments
1,200,000
7,356,129
239,964
350,000
75,900
1,099,447
HB 30
1,820,000
10,700,000
500,000
800,000
(125,000,000)
700,000
Senate
1,200,000
6,883,169
450,000
5,288,411
1,820,000
9,000,000
500,000
200,000
(125,000,000)
980,000
1,196,139
677,161
600,000
2,986,145
500,000
($96,572,415)
($96,305,120)
4
Revenue Changes: HB/SB 30
House
ADDITIONS TO BALANCES
Judicial Vacancy Savings
Indigent Defense Commission Balances
FACT Fund Balance Reversion
Subtotal-Balances
ADDITIONAL REVENUES
Mid-Session Revenue Reforecast
Tax Collections from Mobile Audit Devices
Tax Compliance from Additional Audit Positions
Compliance from Accelerated Withholding Statements
APA Outside Collection Agency Recommendation
Standardization of Circuit Court Excess Fee Policy
Enhanced Compliance SB 611/HB 829 “Zapper” Bill
Adjust Forecast for Ed. Scholarship Tax Credits
Adjust Amazon Sales Tax Forecast
SB 100: Sales Not Use Tax on Satellite TV Equipment
HB 460: Motion Picture Tax Credit
HB1220/SB 623: R and D Tax Credit
SB 608: Lifetime Concealed Handgun Permits
Subtotal-Additional Revenues
2,000,000
600,000
5,288,411
$7,888,411
(15,000,000)
2,000,000
3,200,000
702,000
1,000,000
1,878,000
Senate
967,494
HB 29
$967,494
(15,000,000)
2,000,000
702,000
16,120,000
10,000,000
12,600,000
17,120,000
(20,000,000)
(2,000,000)
($28,220,000)
(2,000,000)
8,737,500
$50,279,500
5
House and Senate Revenue Changes
HB/SB 30
House
Senate
CHANGES TO TRANSFERS
Adjust Amazon Sales Tax – K-12 Component
1,200,000
SB 100 K-12 Component
2,120,000
SB 611 K-12 Component
1,620,000
Increased Firearms Transaction Fee to GF
1,871,642
ABC Profits Adjustment
5,997,672
SCC Balances
6,000,000
10,100,000
Subtotal-Transfers
$11,997,672
$16,911,642
Total Changes: Revenues/Resources
($8,333,917)
$68,158,636
6
Health and Human Resources
7
Major Differences Between
House and Senate Budgets (GF $ in millions)
Major Spending Actions
Medicaid & Other Provider Rates
House
Senate
$44.6
$24.4
$3.9
($7.8)
$0
$9.4
Health Safety Net Services
$7.2
$1.1
Mental Health Bills (ECO, TDO, Bed Reg., etc.)
$5.2
$9.0
Community MH Services to Support MH Bills
$4.6
$12.3
Children’s Mental Health Services
$0
$1.5
Community Rehab. Services (CILs, LTESS, BI Svs.)
$0
$2.5
$2.2
$0.5
$0
$2.9
$67.7
$55.8
Medicaid Waiver Slots
Other Medicaid Services
Domestic Violence Services
Other Social Services
Total:
8
Medicaid Program
 Medicaid Provider Rates (biennial amounts)
• Hospitals
House: Inflation 2.5% increase in FY 15 ($35.3 million GF)
House: Prior year inflation adjustment for teaching
hospitals ($9.3 million GF)
Senate: Inflation 1.25% increase in FY 15 ($17.6 million
GF) no prior year adjustment for teaching hospitals
Senate: Removes $2.7 million GF for Children’s Hospital of
the King’s Daughters supplemental physician payments in
introduced budget
• Personal Care
Senate: 2% Increase in FY 16 ($6.8 million GF) and directs
DMAS to review feasibility and cost to provide paid sick
days for consumer-directed personal care providers
9
Medicaid Services
 Medicaid Waivers
• House: Adds 50 intellectual disability (ID) and 15
developmental disability (DD) waiver slots over biennium
($3.9 million GF) for total of 750 ID and 65 DD slots
 Conditioned on use of coordinated care model
• Senate reduces ID waiver slots by 225 and DD waiver slots by
10 in FY 2015 saving $7.8 million GF
 DOJ allows Commonwealth to count slots added above annual
required number towards following year’s requirement
 Senate adds language requiring DMAS review of waiver cost increase
 Senate adds $23,314 and language to allow for payment of 1st month’s
rent for individuals transitioning from training centers to community
 Other Medicaid/FAMIS Services
• Senate adds $9.4 million GF over biennium for other services
 $3.7 million GF for Medicaid dental services for pregnant women
 $5.0 million GF to restore funds for FAMIS Moms
 $196,564 GF to restore funding for Plan First (family planning waiver)
 $399,935 GF for SB 647 Teledentistry Pilot Program
10
DMAS Language
 House
• Recommends language requiring DMAS and DBHDS to
work with stakeholders to develop and implement
improved care coordination models for all individuals
receiving ID and DD waiver services no later than July 1,
2016
 Senate
• DMAS report on Mental Health Skill Building Services
• DMAS review of nonemergency transportation services
• DMAS review of nursing homes with 100 or more beds and
Medicaid utilization
• DMAS review of cost and feasibility of providing paid sick
days for consumer-directed personal care providers
• DMAS review of ID and DD rate of growth since 2000
• DMAS develop pilot project for telepsychiatry
11
Health Safety Net
 House provides $6.0 million GF over the biennium for the
free clinics and community health centers
 Comprehensive Health Investment Project of Virginia
• House: Adds $800,000 over biennium in TANF funds
• Senate: Adds $900,000 over biennium (half GF and half
TANF)
 Both House and Senate restore $600,000 GF over
biennium to operate 3 Poison Control Centers
 House adds $632,252 GF for public guardianship and
conservator programs
12
Mental Health Services
Services (GF Biennial $ in Millions)
HB 293/HB 1232 and SB 260 Use of State Hospitals
for TDOs, Bed Registry
House
Senate
$8.4
$5.9
HB 293/SB 260 Extend TDOs from 48 to 72 hrs.
($3.1)
$3.1
HB 478/SB 260 Extend ECO (H:8 hrs. / S:24 hrs.)
$0.2
$0.5
Crisis Intervention “Drop-off” Cntrs. (H: 17 / S: 24)
$2.7
$5.4
Programs of Assertive Comm. Treatment (PACT)
$1.9
$0
Discharge Assistance Program
$0
$2.3
Local Inpatient Purchase of Services (LIPOS) Beds
$0
$2.3
Permanent Supportive Housing (Adds 2 programs)
$0
$2.4
Children’s Mental Health Svs. (Psychiatry & Crisis)
$0
$1.5
$0.7
$0.7
$10.8
$24.1
Additional Security Staff at CCCA
Total:
13
 House
DBHDS - Language
• Language requires the agency to monitor and annually report on
community services boards (CSBs) use of state hospital psychiatric
beds, including excessive utilization and to work with CSBs to improve
bed utilization
• Language requires the agency to review and make recommendations to
improve CSBs with an interim report due by December 1, 2014, and a
final report by December 1, 2015
• Language authorizes the agency to use balances in community funding
up to $2.8 million in FY 2015 to provide for one-time expenses to
transition individuals from Northern Virginia Training Center into the
community or to assist in maintaining the community placement
• Language requires that any review and report of the configuration of
services provided by the Commonwealth’s state mental health hospitals
shall provide for the continued operation of Hiram Davis Medical
Center
 Senate
• Language prohibits funding for methadone clinics located near schools
or day care centers, with certain exceptions
14
Social Services
 Foster Care and Adoption Services
• House saves $1.4 million GF over biennium by adjusting the
inflation rate for foster care services from 3% to 1.47% (CPI)
• House eliminates new initiative to expand programs to 19 to 21year olds (saves $1.9 million GF over biennium)
• Senate adopts new initiative and assumes a higher Title IV-E
eligibility rate for children ages 19-21 in CSA (saves $1.4 million GF)
 Domestic Violence Services
• House spends $2.2 million GF and $2.7 million in TANF funds over
the biennium
• Senate provides $500,000 in TANF funds in FY 2015 and $500,000
GF in FY 2016
 Senate spends $2.9 million GF on other Social Services
• $1.0 million for Caregivers Grant Program
• $750,000 for Northern Virginia Family Services
• $500,000 NGF in FY 2015 and $500,000 GF in FY 2016 for
Community Action Agencies
• $425,708 GF to increase TANF payments by 2.5% in FY 2015
• $138,000 for new child advocacy center in Fairfax County
15
HHR Savings Differences
Savings Actions (GF Biennial $ in millions)
House
Senate
Medicaid GF Offset –VHCF Tobacco Taxes Revenue
($5.4)
($11.8)
Use of DBHDS Trust Fund (H: Offset DOJ Costs / S: Spends
on NVTC Transition Costs)
($5.4)
($5.8)
Medicaid Savings from Prepaid Funeral Plans
($4.0)
$0
Eliminate Medicaid Supplemental Physician Payment for
CHKD Hospital
$0
($2.8)
Foster Care & Adoption Expansion ages 19 to 21 (House:
Eliminates/Senate: Assumes Higher Title IV-E
Participation)
($1.9)
($1.4)
Adjust Foster Care Maintenance Inflation Rate
($1.4)
$0
Savings from Negotiated Adoption Agreements
($0.7)
($1.2)
TANF for GF in CHIP of Virginia, Healthy Families
($1.1)
$0
Delay Medicaid Participation in ConnectVirginia
($0.5)
$0
Eliminate Funds for Greater Richmond ARC Accessible Park
$0
($0.2)
($0.3)
$0
($20.6)
($23.3)
Eliminate Youth for Tomorrow
Total:
16
Public Education
17
HB 29: Amendments in Public Education
 House and Senate both adjust for four technical
amendments
• Adds $228,977 to reflect corrections to pupil transportation data
submitted by Radford City school division
• Saves $1.3 million from the updated sales tax distributions for the
most recent changes in the school-age population estimates
• Adds $15.5 million NGF in Lottery Proceeds Fund revenues from the
reforecast projection and saves a like amount of GF
• Adds a net $10.9 million NGF in Literary Fund revenues from FY13
carry forward balances and FY14 reforecast projection and saves a like
amount of GF
 Both budgets capture $600,000 in balances for the College
Lab Schools
 Senate budget included several other amendments:
• Virginia School for the Deaf & Blind: Adds $300,000 to help offset
unrealized revenues in facility rental income
• Opportunity Educational Institution: Reverts $450,000 in FY13
balances from DOE administrative funds that were transferred to OEI
• Department of Education: Adds $50,375 to offset prior year budget
reduction
18
HB 30: Major Actions in Direct Aid
 House and Senate both provide $5.2 million GF over the
biennium for technical corrections
• K-3 Class Size Reduction: Increase of $4.5 million
• Transportation update from Radford: Increase of $563,599
• Real Estate Property True Value updates from Charlotte and
Richmond County and Hampton: Increase of $131,225
 Both budgets provide funding for the Cost of Competing
Adjustment for support positions in the first year
• House: $5.4 million GF
• Senate: $5.0 million GF
 Both budgets recognize an additional $20.0 million in
Lottery Proceeds Fund revenues from the reforecast
estimate and saves a like amount of GF
 Strategic Compensation Grants
• House reduces the second year allocation by $1.5 million GF
• Senate cuts the first year by $3.0 million GF and eliminates all of
the funding, $7.5 million GF, in the second year
19
HB 30: Major Actions in Direct Aid
 Both budgets recognize an additional $25.0 million in
Literary Fund revenues from the sale of unclaimed stocks
and property
• House uses $20.0 million for VRS retirement payments; allocates
the remaining $5.0 million for additional school construction
loans
• Senate uses all $25.0 million for VRS retirement
• Senate eliminates $12.5 million in Literary Fund allocations for
school construction loans and redirects revenue to pay for VRS
retirement payments
 Achievable Dream
• House establishes a new school in Virginia Beach school division
and adds $554,000 the first year
• Senate adds $2.0 million GF over the biennium for the existing
school operating in Newport News in lieu of using tax credits for
donations
 Project Discovery
• House saves $425,000 each year
• Senate increases funding by $1.0 million each year
20
HB30: Direct Aid - Senate Amendments
 Senate adds $57.7 million GF over the biennium to provide
funding that can be used for any school expense
• Funding is based on 75% of non-personal inflation amount
 Pre-K Initiative
• Adds $7.2 million GF over the biennium for hold harmless
provision for number of student slots funded
• Adds $1.4 million GF to increase the PPA by $98 in FY16
• Directs DOE to update Head Start data annually
 Adds $6.2 million GF over the biennium from additional
sales tax revenues generated from SB100, SB611, and
adjustment to the ‘Amazon’ sales tax bill
 Adds $4.8 million GF over the biennium for start-up grants
for extended school year models
 Adds $1.7 million GF over the biennium for School Services
Agreement and Tuition Contract between Chesterfield and
Petersburg
21
HB30: Direct Aid - Senate Amendments
 Senate budget provides a net amount of $2.5 million GF over the
biennium for a number of smaller projects as follows:
• $650,000 for Early Childhood STEM Pilots in 5 divisions
• $584,000 to expand Teaching Scholarship Loan program
• $400,000 to increase the number of Virtual Virginia on-line courses
offered
• $328,747 to eliminate the funding cap on the number of Governor’s
School student slots
• $302,700 in first year for Governor’s School funding formula pending
outcome of review by SOE
• $300,000 in first year for phase 2 of STEAM Academy planning
• $250,000 in second year to expand e-Learning Backpack initiative
• $100,000 for VA STAR initiative
• $50,000 in first year for Western Virginia Consortium
• Saves $500,000 from staffing teachers at the Juvenile Detention facility
current FY14 level
 Language amendment directs DOE to evaluate Teach for America
22
Department of Education -- Central Office
 Both budgets include about $181,000 for Education
Commission for the States
 Both budgets realize savings from SOL testing
consolidations
• House saves $6.0 million by eliminating 5 tests
• Senate saves $1.8 million by eliminating 1 test
 House budget saves a total of $896,000 by level funding
Positive Behavioral Intervention and Excellence in Teaching
Center at FY 2014 amounts
 Senate budget adds $150,000 in the second year for
planning the design of a Statewide IEP database
23
Secretary of Education and
Opportunity Educational Institution
 Secretary of Education
• Both budgets eliminate the College Lab Partnership program:
saves $600,000 the first year
• Senate adds $200,000 the second year for three public
broadcasting stations
• House language:
 Adds a reporting requirement for the Governor’s School
Funding Formula review
 Directs Secretary to review value and cost for Program for
International Student Assessments
 Opportunity Educational Institution (OEI)
• House saves $900,000 by funding OEI at the FY 2014 amount
• Senate eliminates OEI and saves $1.2 million
24
Compensation and Retirement
25
Revenue Reserves
 Both budgets include a revenue reserve to provide a cushion
in case of any further downward revisions to the 2014-16
biennium’s revenue forecast
 House reserve includes $137.3 million which, if not required
to meet revenue reductions, appropriated as follows
• $61.0 million for employee compensation actions
 All compensation actions proposed in House budget (except 2nd
year of Asst. Commonwealth’s Attorneys salary adjustment) are
tied to revenue reserve
• $76.3 million to increases the VRS contributions for the 4 state
employee retirement plans to 100% of the VRS Board certified rates in
FY 2016
 Senate budget includes revenue reserve of $49.2 million for
a 1% salary increase for state and state-supported local
employees on January 1, 2015
• Senate budget also includes significant compensation
expenditures not included in revenue reserve
26
VRS Funding Amendments
Phase in of VRS Board Certified Rates
 House budget includes an additional $76.3 million GF, above the
introduced budget, in FY 2016 to increase the VRS contributions for the 4
state employee retirement plans to 100% of the VRS Board certified rates
in FY 2016
 Senate budget funds the VRS rates for the state employee retirement
plans using the rates in the introduced budget
• 78.02% of the Board certified rate for the state employee plan
Other VRS Amendments
 House budget includes language transferring $18.0 million from the
Commonwealth’s Attorney Services Council to the VRS for SPORs and
VaLORs (HB 29)
 House budget includes $170,000 GF each year to fund impact of HB 1105
which sets a minimum life insurance benefit for retirees with 30 years of
service of $8,000
 Senate budget assumes $1.1 million GF in savings each year to reflect
proposed increase in mandatory retirement age for judges from 70 to 73
years of age pursuant to SB 170
27
State Employee Compensation
 House budget includes, in the revenue reserve, $38.4 million GF
for state employee compensation actions
• $5.1 million GF in FY 2015 and $10.3 million GF in FY 2016 for 2% salary increase
(January 1, 2015 paycheck) for 19 specific state employee job roles
• $22.9 million GF in FY 2016 for a 2% bonus for all state employees on July 1, 2015,
excluding the employee groups who received the 2% salary adjustment
 Funding for all higher education employees is included in the universities’ budgets
 Senate budget includes $55.3 million for state employee
compensation
• $708,078 GF in FY 2015 and $809,232 GF in FY 2016 for a 2% salary increase for
grade 6, 7, and 8 district court clerks (effective August 16, 2014 paycheck)
 Funding for targeted salary increases for 16 other job roles is eliminated
• $11.4 million GF in FY 2015 and $22.5 million GF in FY 2016, in revenue reserve,
for 1% salary increase (January 1, 2015 paycheck) for all state employees
 Funding for higher education faculty is included in the universities’ budgets
• $19.5 million GF in FY 2016 for a 1% bonus for all state employees on December
1, 2015
28
State-Supported Local Employees Compensation
 House budget includes $25.7 million GF for targeted salary
increases and bonuses for state-supported local employees
• $2.1 million GF each year to provide a $3,308 salary increase for all Assistant
Commonwealth’s Attorneys
• $2.3 million GF in FY 2015 and $4.7 million GF in FY 2016 for 2% salary adjustment for entry
level deputy sheriff positions effective January 1, 2015
• $215,394 GF in FY 2015 and $430,789 GF in FY 2016 for a 4% salary increase for Circuit
Court Deputy Clerk I positions, and a 2% salary increase for Circuit Court Deputy Clerk II
positions effective January 1, 2015
• $13.9 million GF in FY 2016 for a 2% bonus for all state-supported local employees on July
1, 2015, excluding the employee groups who received a targeted salary increase in budget
 Senate budget includes $29.3 million for targeted salary
increases and bonuses for state-supported local employees
• $2.1 million GF each year to provide a $3,308 salary increase for all Assistant
Commonwealth’s Attorneys
• $4.7 million GF each year for 2% salary adjustment for entry level deputy sheriff positions
effective July 1, 2014
• $430,789 GF in each year for a 4% salary increase for Circuit Court Deputy Clerk I positions,
and a 2% salary increase for Circuit Court Deputy Clerk II positions effective July 1, 2014
• $5.0 million GF in FY 2015 and $9.9 million GF in FY 2016, in revenue reserve, for 1% salary
increase (January 1, 2015 paycheck) for all state-supported local employees
29
Career Development Programs
 House budget includes $1.2 million GF to support increased
participation in the Career Development Programs
• House amendments transfer funding included in introduced budget to
revenue reserve and defers funding until January 1, 2015 to ensure
revenues are available
 6-month deferral results in savings of $385,257 GF compared to
introduced budget
 Senate budget includes $3.0 million GF to support increased
participation in the Career Development Programs
• Senate budget adopts funding in introduced budget of $770,514 GF
each year for increased participation effective July 1, 2014
• Recommends an additional $441,801 GF each year for the Master
Deputy program and funding each year of $123,778 GF for the Career
Prosecutors program
• Includes $303,342 GF in FY 2016 to fund, for the first time, a career
development program for deputy circuit court clerks
30
General Government
31
Funding for Judicial Vacancies
 House budget includes funding for approximately 397 circuit
or district court judgeships
• House amendment includes $1.0 million in reversions, in
both FY 2015 and FY 2016 from judicial vacancies
Amendment includes language which releases funding
for judgeships filled specifically in Appropriation Act
Language or filled during a special session of the 2014
General Assembly
• Amendment included in HB 29 reflects $1.1 million in
additional savings in the current year based on actual
experience
 Senate budget assumes 401 judgeships in FY 2015 and 400
judgeships in FY 2016
• Senate amendment includes a reversion of $586,516 GF in
FY 2015 and $398,978 GF in FY 2016 from judicial
vacancies
32
General Government
Significant Spending Amendments
Total GF Impact HB/SB 29 and 30
House
Legislative: Funding for Va. Conflict of Interest and
Ethics Advisory Council
Legislative: Crime Comm. Loss of Federal Funding
$600,000
Senate
$140,000
(Transferred from Sec.
of Commonwealth)
$0
$200,000
Legislative: JLARC Funding for Consultants
$300,000
$0
Judicial: Reinstate Judicial Evaluation Program
$240,000
$0
Judicial: Additional State GF Support for Legal Aid
$0
$2,000,000
Judicial: Community Tax law Project
$0
$50,000
Compensation for Victims of Sterilization
$500,000
$0
Finance: Fund Sec of Finance Office
$314,513
$316,000
$0
$400,000
Finance: Paper Checks for Tax Refunds
33
General Government Savings
 House included a reduction of $950,000 GF each year from
the Economic Contingency Fund
• Adjusts funding to $1.5 million each year
 House saves $662,660 GF over the biennium from 3
proposals related to the Criminal Fund within the Judicial
Department
• Savings generated by replacing contract employees with 2 inhouse foreign language interpreters (Korean and Vietnamese)
• Cap on reimbursement for court appointed attorneys for
individuals already incarcerated
• Require special prosecutors to be neighboring Commonwealths
Attorneys
 House saves $125,000 GF each year in reduced expenditures
for school efficiency reviews
34
Senate Budget - Other Items
 Senate budget includes language requiring the Secretary of
Finance to facilitate a workgroup including the Chairmen of
the House Appropriations, House Finance, and Senate
Finance Committees to assess the timing of the current
biennial appropriations process
• Requires report to the General Assembly by October 15, 2014
 Senate budget amends language in Part 3 regarding the
calculation of fines and fees collected in General District
Courts performed by the Auditor of Public Accounts
• Current language returns to the general fund 1/2 of local fines
and fees that are in excess of 50% of the total fines and fees
collected by the localities General District Court
• Amended language includes total fines and forfeitures in the
calculation (not fees) and increases threshold to 65%
 It is estimated this would increase revenue to literary fund by $1.5 million per year
 Senate budget does not adjust literary fund to reflect new language
35
Higher Education
36
Operating & Research Funds
Colleges, Universities, VIMS & Ext (Excluding Compensation)
 House
• Provides $153.8 million for 8 major items
 $6.2 million for new seats at UVA, CWM, JMU & VT
• Completes funding to provide about 1,700 new seats begun in 2011 Session
 $50.9 million for additional full-time faculty
 $20.0 million to moderate increase of in-state tuition
 $21.8 million for targeted research
 $11.8 million for degree incentive funding
• Another $22.4 million is reflected as compensation
 $14.0 million for retention and graduation improvements
 $21.5 million for the operations and maintenance of new buildings
 $7.6 million for institution-specific initiatives or other spending
 Senate
• Provides $76.0 million for 5 major items
 $13.5 million for base operations at ODU & NSU
 $14.8 million for targeted research
 $28.3 million for degree incentive funding
 $2.3 million for operations and maintenance of new buildings
 $17.1 million for institution-specific initiatives or other spending
37
Comparison of Operating and Research
H: $153.8 million / S: $76.0 million
(GF $ in Millions)
Institution
House
Senate
CNU
$3.9
$1.2
CWM
1.1
GMU
Institution
House
Senate
UVA
$9.6
$6.2
1.7
UVA-Wise
1.5
0.4
14.5
5.2
VCU
14.2
7.2
JMU
8.0
3.2
VMI
1.7
1.1
LU
3.6
0.8
VSU
3.5
0.5
UMW
3.6
1.1
VT
15.2
6.6
NSU
5.8
4.7
RBC
1.8
0.6
ODU
25.6
16.5
VCCS
30.8
12.5
RU
5.7
2.2
VIMS / Extension
3.8
4.3
38
Compensation Actions
Colleges, Universities, VIMS & Extension
 House
• Provides $23.6 million in FY 2016 for a two percent bonus for
faculty and classified
 Authority for executing the bonus is contingent upon meeting
certain revenue triggers outlined in central accounts
 Dollars allocated using degree incentive formula and remain with
the institution
 Senate
• Provides $25.0 million for a one percent mid-year faculty salary
increase in the first year and a one percent bonus in the second
year
 Amounts are allocated to each institution
• Provides $10.3 million for a one percent mid-year classified
salary increase in the first year and a one percent bonus in the
second year
 Amounts are allocated in the central appropriations and are
contingent upon meeting revenue forecast
39
Financial Aid
H: $12.1 million / S: $58.8 million
 House
• Provides $3.9 million for graduate financial aid at research
institutions
• $8.2 million for Tuition Assistance Grants
 Increases award from $3,100 to $3,300
 Provides growth for enrollment
 Senate
• Provides $3.9 million for graduate financial aid at research
institutions
• $3.1 million for Tuition Assistance Grants
 Provides growth for enrollment only
• Provides $42.4 million for undergraduate financial aid
• Provides $5.4 million for the Two-Year College Transfer Grant
related to SB 429
40
Other Higher Education
EVMS
NCI
IALR
RHEA
SVHEC
SWVHEC
Jeff Labs
Subtotal Centers
FCM
Gunston Hall
JYF
LOV
SMV
Comm for Arts
VMFA
Subtotal Other Educ.
House
Senate
Difference
7,000,000
1,460,074
1,637,869
686,000
600,000
550,654
4,600,000
$16,534,597
3,200,000
1,458,270
1,637,869
686,000
775,000
365,654
3,400,000
$11,522,793
3,800,000
1,804
0
0
(175,000)
185,000
1,200,000
$5,011,804
321,300
0
1,388,700
700,000
544,794
137,000
715,888
$3,807,682
320,000
0
1,758,700
1,000,000
544,794
387,000
543,606
$4,554,100
1,300
0
(370,000)
(300,000)
0
(250,000)
172,282
$(746,418)
41
Other Higher Education
 Advanced Manufacturing Advisory Council
• House creates an eight-person, industry-led advisory council for
advanced manufacturing
• House provides $25 million treasury loan for apprenticeship
academy contingent on receipt of federal grant
• Senate: No action
 Higher Education Equipment Trust
• House: $8.1 million increased allocation for research equipment
at UVA, VCU and VT in first year
• Senate: $8.8 million increased allocation for research and
workforce in each year
42
Significant Language
 Reallocations
• House requires up to a two percent reallocation linked to 2nd
year bonus NGF component
• Senate does not require any reallocation
 SCHEV & Auditor of Public Accounts
• House:
 Requires evaluation of faculty salary peer groups (SCHEV)
 Requires evaluation of instructional technologies (SCHEV)
 Standardization of athletics reporting (APA)
 Workforce metrics (SCHEV)
• Senate:
 Study of TAG as need-based aid
 Work with DOE in evaluation of K-12 college access programs
 Update space planning guidelines
 Review VCCS land acquisition and site prep local requirements
43
Research Details
($ in Million)
GMU - Modeling & Simulation
GMU - Lyme Disease
ODU - Center for Bioelectrics
UVA - Cancer Research
UVA - Focused Ultrasound
UVA - Economic Accelerator
VCU - Cancer Research
VCU - Parkinson's Disease
VT - Brain Disorder
VIMS - Chesapeake Bay Fisheries
Total:
House
$1.0
0.25
2.95
2.0
2.0
2.0
4.0
1.3
5.3
1.0
$21.8
Senate
$1.0
0.25
1.95
2.0
2.0
0.0
2.0
1.3
3.3
1.0
$14.8
44
Capital Outlay
45
HB 29
 Treasury Board
• House: Saves $1.5 million related to Build America Bonds GF Subsidy
• Senate: No action
 Capital Project Pool
• House:
 GMU Academic / Research Building NGF gift requirement
 VSU Water Tank and Piping fund split
 Elimination of Alexandria CSO
• Senate: No actions
• Both House and Senate supplement pool for DGS projects
 Capital Planning Pool
• Senate:
 Adds $1.7 million NGF for Curie and Reed Hall at Radford
 Substitutes two projects at NVCC for the Annandale Phase VII Building
• House: No action
• Both House and Senate substitute ODU Chemistry Building for Joint
Policing Facility
 All other items in HB 29 are identical
46
HB 30
 Treasury Board
• House:
 $2.8 million savings related to Build America Bonds GF Subsidy
 $16.0 million savings related to VCBA spring issuance timing
• Senate:
 $0.8 million savings for River North Correctional Facility from
Woodrum Impact on Senate Bills
 Maintenance Reserve
• House adds $5.0 million for DGS, VSU, Jamestown & Frontier
Culture Museum
• Senate adds $27 million across all agencies
 Both House and Senate eliminate $100 million in NGF
revenue bonds
 Both House and Senate save $2.9 million GF by moving
Gunston Hall and Waller Depot projects to capital pool
47
Capital Project Pool
 Both House and Senate adjust project pool by $4 million
 Both House and Senate add authority for five projects in
the pool for Gunston Hall, Va. Museum of Fine Arts, UVA,
Waller Depot, and Roanoke Higher Education Center
 House adds Water Tank Phase III project at Department of
Corrections to replace Fire Alarm Systems
• Senate: No action
 House adjusts projects related to Department of Forestry
and Department of State Police
• Senate: No action
 Stormwater grants
• House adds $38 million contingent on digital mapping
• Senate adds $20 million contingent on digital mapping
48
Project Planning
Agency
Project Title
DBHDS
Replace Central State Hospital
DBHDS
Construct SVP Expansion
Expand Central Forensic Lab /
CME
Construct Academic Building,
Fauquier Campus, Lord Fairfax
Department of Forensic Science
Virginia Community College System
House
Senate








Department for the Blind and Vision Renovate the Departmental
Impaired
Headquarters Building

Department of Conservation and
Recreation

Renovate Historic Buildings,
Walnut Valley Farm, Chippokes
Renovate Buckingham
Wastewater Treatment Plant
Replace Generators Multiple
Department of Corrections
Facilities
Southwest Virginia Higher Education Construct Service Corridor,
Center
Storage Area, Replace Generator
Life Safety Improvements,
Woodrow Wilson Rehabilitation
Anderson Vocational Training
Center
Building
Department of Corrections



49

Transportation
50
HB 29: Transportation
 Both budgets utilize balances from the 2007-2008
appropriation for the Transportation Partnership
Opportunity Fund for specific projects
 House utilizes $10.0 million for port dredging projects and
$20.0 million for rail grade crossing projects in Suffolk
 Senate utilizes a total of about $25.0 million for a series of
projects as follows:
• $10.0 million for planning and environmental studies associated with
expansion of light rail to Norfolk Naval Station and potential light rail
in Hampton/NN
• $4.0 million for Route 1 corridor study
• $2.0 million for study of expanded VRE Service
• $4.0 million for a dedicated runway on Wallops Island for UAS test
range
• $4.5 million for rural road needs around Powhatan State Park
51
HB 30: Transportation Funding
 Port Dredging
• House switched fund source for Port dredging projects from $6.5
million GF to $10.0 million of TPOF balances (as mentioned in HB 29)
• Senate also removed the $6.5 million GF and authorized $3.5 million
from highway construction share of the TTF
• Increase included in the House budget intended to fully cover costs,
which includes amount relating to previous dredging to 50 feet and
amounts owed to the federal government
 Port Economic Development Zone Grant Fund
• House swapped the fund source for the proposed grants of $1.5
million in FY 2015 and $2.0 million in FY 2016 to the GOF
• Senate reduced the GF appropriation to $1.0 million each year –
mirroring the FY 2014 amounts
 Port Capital Projects
• Both House and Senate removed the two projects included in HB 30 in
error and removed the $90.0 million NGF in Capital Outlay
• House included the language changes relating to the equipment
project
52
Common Language Items
 Both included language calling for a report on methods to
provide additional assistance for local roads
 Both authorize an increase in the use of planning funds from
$4.5 million to $7.0 million each year for project prioritization
 Both include language directing VDOT to assess maintenance
conditions and expenditures in the Richmond District
• Senate language calls for a report only
• House language requires use of data for funding allocations in FY
2016
 Both authorize use of FY 2014 appropriation balances for the
High Rise Bridge to continue that project to preliminary
engineering
53
Senate Transportation Items
 Senate provided $10,800 each year to support an I-73 Study
Resolution
• House Rules tabled similar resolution
 Senate includes language directing the VCSFA to negotiate
with NASA on lease/ownership terms of a proposed UAS
runway, funding for which is included in HB 29
 Senate directs use of $200,000 NGF each year for the
Richmond Petersburg Express Route service
• Contrary to 2012 conference agreement/language in Ch. 806
 Includes language making dedication of funds for rail
preservation from the REF mandatory instead of permissive
 Provides $187,443 in the first year and $55,717 in the second
year for air quality monitoring at the terminus of the I-395
Express Lanes
 Senate includes Part 4 language authorizing a reduction in the
registration fee for diesel passenger vehicles in lieu of refund
54
House Transportation Items
 House includes language directing the Transportation Accountability
Commission to report annually on the uses of HB 2313 revenues
 House includes language clarifying the NOVA regional funds can
only be used in FY 2015 and beyond on projects that have been
prioritized
 House includes language directing VDOT to develop a list of project
priorities along the I-81 corridor
 House prohibits VDOT from using state funds to promote or
advocate for particular projects
 House includes 2 items to help DMV expand access to EZ Passes
and to ensure program costs are reduced by entering into reciprocal
toll collection agreements
 House earmarks a total of $190,000 from Transportation
Alternatives Program funds for 2 projects
 House includes Governor McDonnell’s technical correction which
eliminates a vetoed item related to use of surpluses
55
Agriculture and Forestry and
Commerce and Trade
56
HB 30: Agriculture and Forestry
 Neither House nor Senate included any dollar amendments in
the Secretariat
 House budget appropriates $300,000 each year to VDACS for
hydrilla control from DGIF watercraft sales revenues, Senate
provides $500,000 each year but includes actual funding in
DGIF
 House budget reflects legislation moving Racing Commission
from Secretariat of Commerce and Trade to Secretariat of
Agriculture and Forestry
• This action adopted pursuant to HB 1074 – Legislation is pending
in the Senate
57
Commerce and Trade
 House budget included net reductions of $44.2 million inclusive of
balance captures in the caboose bill
 Senate budget included net reductions of $21.4 million inclusive of
balance captures in the caboose bill
 The largest reductions reflected in both budgets are as follows:
• Both captured GOF balances in 2014 – House recouped $10.7 million and
Senate $9.0 million
• Both reduced the Rolls Royce grant by $5.5 million in FY 2016
• Both captured the undesignated FACT Fund amounts of $5.3 million in FY
2015 (Senate shows action in General Government subcommittee)
• Both saved $2.5 million by eliminating first year funding for the Life
Sciences Consortium
• Both captured $2.0 million from eliminating a proposed site planning fund
deposit in FY 2016
• Both eliminated DHCD accelerator initiative of $250,000 each year
• Both capture VJIP balances of $500,000 in FY 2014
58
Commerce and Trade
 Spending included in both budgets:
• Both bodies include funding for the Biofuels Production Fund although
amounts differ slightly to reflect changes made in the legislation which
was introduced only in the House ($1.5 million year House, $1.6 million
year in Senate)
• Both provide $35,000 to review local fiscal impacts of mandates
pursuant to legislation adopted by both bodies
• Both restore the outdoor advertising program at $75,000 each year
 Senate provides $500,000 in the second year for an accessible
housing grant
 House included $100,000 each year to supplement the Virginia
Israel Advisory Board
 House also provides $140,000 to restore reductions to the Planning
District Commissions at DHCD
59
Other House Reductions Commerce and Trade
 House removed $7.75 million from the Motion Picture
Opportunity Fund to reflect an increase of tax credits from $5.0
million biennium to $12.5 million year
• Senate struck legislation (Watkins) but has House legislation under
consideration
 House eliminated $4.0 million GF each year for the Housing Trust
Fund
 House saved $9.0 million over biennium for the Slave Heritage Site
based on assumed project timelines and performance goals Senate retained full amounts, spread across biennium
 House reduced CRCF $1.8 million each year – Senate did not
change amount
 House saved $1.0 million year by eliminating the wind energy
incentive funding
 House saved $500,000 by eliminating funding for birthplace of
country music and saved $350,000 by reducing first year amounts
for the Southwest Cultural Heritage Foundation
 House saving $581,500 each year by eliminating a VEDP
international defense contractors initiative started last year
60
Natural Resources and
Technology
61
Natural Resources
Similarities Between House and Senate Budgets
 Both allocate bonds in FY 2015 to assist localities with stormwater
improvements
• House provides $18 million more in bonds than Senate
• Both require improvement in the resolution of Virginia’s digital map
• Senate requires reports on local and state stormwater management program
fees
 Both restore dues for the Interstate Commission on the Potomac River Basin
 Both implement rainfall, stream & water quality gauges on the Rappahannock
River
Differences in House and Senate Budgets
 Senate adds $2.0 million to upgrade soil and water conservation district dams
 Senate includes $2.8 million in increased funding for state parks
 Senate reduces funding for agricultural best management practices by $6.4
million in FY 2015 and $10.8 million in FY 2016
 House adds $1.0 million GF in FY 2015 for the Civil War Historic Preservation
Fund
 House captures $1.1 million GF each year from specific dam projects
 Senate requires that DEQ’s Waste Management Board increase registration
fees and that such fees be adjusted annually by the CPI
 House includes $100,000 GF per year to reestablish shoreline erosion service
(SEAS)
 House provides $127,600 each year to fill two vacant marine police positions
62
Technology
Similarities Between House and Senate Budgets
 Both eliminate new funding for modeling and simulation
 Both eliminate new funding for cyber-security data analytics
 Both reduce new funding for “broadband” assistance
• House eliminates all $2.1 million; Senate cuts in half ($1.1 million)
Differences in House and Senate Budgets
 Senate includes $1.0 million GF per year to support a multi-agency work group
to identify regulatory challenges to the development, testing, and use of
unmanned technologies
 Senate reduces funding for CIT’s GAP Fund by $200,000 per year
 Senate language requires CIT to report an itemized monthly report of all
spending on unrelated lobbyists, lawyers, consultants, or any entity providing
such services
 House includes $773,464 in FY 2015 and $917,953 in FY 2016 to create 7 new
positions for VITA to service state agency needs and protect Commonwealth
data
 Senate requires CIO to provide report on progress toward eliminating used of
Uniysis mainframe by September 15 annually until usage of the mainframe is
discontinued
 Senate includes language imposing additional limitations on CGI Enterprise
Applications Master Services Agreement
• Only TAX uses agreement; used for debt recovery – contract expires at end of FY
2015
63
Public Safety
64
Public Safety: HB 29
Differences in House and Senate Budgets:
 Compensation Board: Senate adds $4.8 million for jail per diems
 Juvenile Justice: House adds $250,000 GF to assist the agency with
year-end close, Senate includes $900,000 GF
 Emergency Management: Senate captures a year-end balance of
$677,161 from the Disaster Recovery Fund
 State Police: Senate includes $3.0 million NGF for the purchase of
vehicles and helicopter maintenance as requested by Governor
 State Police: Senate captures $1.2 million in additional firearms
transaction fees based on 2014 projections
65
Major GF Spending Differences Between
House and Senate Budgets
Major Spending Actions
House
Senate
Lifetime Concealed Weapon Permit Operation
$0
$6.0 million
Sexual Assault and Domestic Violence Funding
See HHR
$4.0 million
Additional Funding for State Police
$0
$2.8 million
CSU Mental Health Treatment for Juveniles
$0
$2.4 million
State Police Funding for Firearms Checks
$0
$1.1 million
514,302
$775,170
Forensic Scientists for PERK Test Examinations
$600,000
$612,500
Human Trafficking Training and Policy
Language
$164,000
Additional Funding for CASA
$0
$200,000
Additional MELP for DMA STARS Radios
$0
$720,000
Reimbursement for Med-Flight Paramedics
$800,000
$200,000
Veterans Funding
$300,000
$700,000
Encroachment on Langley AFB
$500,000
$0
$2.7 million
$19.6 million
VDEM Disaster Response Plans Review
Total:
66
Senate Has Additional Revenues
HB 30 Revenues
House
Senate
Lifetime Concealed Handgun Permits
$0
$8.7 million
Additional Firearm Transaction Fees
$0
$1.9 million
$0.0
$20.7 million
Total:
 One reason the Senate spends more in Public Safety than the House is
the use of additional revenue
• Revenue generated from Public Safety related agencies or legislation
provides $14.7 million more than is generated by the House
• For example, $8.0 million in spending is supported by $8.7 million in
revenue from the creation of lifetime concealed weapons permits
 15 new positions for State Police at a cost of $6.0 million for biennium
 $2.8 million is provided to augment State Police in FY 2016
67
Public Safety Savings Differences
(Biennial GF)
Savings Actions
House
Senate
Level Fund HB 599 Aid to Police Departments
($7.2 million)
$0
Jail Overcrowding Positions Only at 150 percent
($2.3 million)
$0
Level Funding SRO-SSO Grants
($1.5 million)
$0
Use of NGF Balances for State Police Vehicles
($1.4 million)
$0
$0
($500,000)
Level Fund Correctional Officer Positions
($487,660)
$0
Eliminate Use of GF for Citizen Corps Program
($391,956)
$0
Eliminate of Public Safety Deputy Position
($311,554)
$0
Eliminate Nonviolent Rights Restoration
($320,221)
$0
Use of Sentencing Legislation Funding Elsewhere
($561,933)
($788,309)
($14.5 million)
($1.3 million)
Use of Abbott Labs Interest for CASC
Total:
68
Public Safety : Language
ABC

Senate includes language requiring revocation of mixed beverage licenses if licensee
fails to meet food-beverage ratios twice in a 5-year span
DOC

Senate requires DOC to review the private contract for operation of Lawrenceville
Correctional Center
House eliminated all language regarding Lawrenceville Correctional Center from
introduced budget

DCJS

House requires DCJS to develop model policy for law-enforcement identifying human
trafficking offenses and identification of victims of human trafficking
Emergency Management

House directs VDEM to report on the creation, funding, and coordination of various
existing disaster response funds
Juvenile Justice



Senate includes language regarding the conveyance of Culpeper Juvenile Correctional
Center to DOC
House makes no changes to language included in introduced budget
Senate creates task force to examine juvenile justice system and develop
recommendations for fiscally sound, data-driven policies to improve public safety,
youth outcomes, and effective use of resources
• Includes representatives from all three branches of government
State Police

Senate directs State Police and DHRM to review the department’s career progression
program and report by October 15th
69